HCS SS SCS SB 174, 2015 (New Section - Proposed Language)
166.610. 1. The board may enter into ABLE program participation agreements with participants on behalf of designated beneficiaries pursuant to the provisions of sections 166.600 to 166.645, including the following terms and conditions:
(1) A participation agreement shall stipulate the terms and conditions of the ABLE program in which the participant makes contributions;
(2) A participation agreement shall specify the method for calculating the return on the contribution made by the participant;
(3) A participation agreement shall clearly and prominently disclose to participants the risk associated with depositing moneys with the board;
(4) Participation agreements shall be organized and presented in a way and with language that is easily understandable by the general public; and
(5) A participation agreement shall clearly and prominently disclose to participants the existence of any load charge or similar charge assessed against the accounts of the participants for administration or services.
2. The board shall establish the maximum amount of contributions which may be made annually to an ABLE account, which shall be the same as the amount allowed by Section 529A of the Internal Revenue Code of 1986, as amended.
3. The board shall establish a total contribution limit for savings accounts established under the ABLE program with respect to a designated beneficiary which shall in no event be less than the amount established as the contribution limit by the Missouri higher education savings program board for qualified tuition savings programs established under sections 166.400 to 166.450. No contribution shall be made to an ABLE account for a designated beneficiary if it would cause the balance of the ABLE account of the designated beneficiary to exceed the total contribution limit established by the board. The board may establish other requirements that it deems appropriate to provide adequate safeguards to prevent contributions on behalf of a designated beneficiary from exceeding what is necessary to provide for the qualified disability expenses of the designated beneficiary.
4. The board shall establish the minimum length of time that contributions and earnings must be held by the ABLE program to qualify as tax exempt pursuant to section 166.625. Any contributions or earnings that are withdrawn or distributed from an ABLE account prior to the expiration of the minimum length of time, as established by the board, shall be subject to a penalty pursuant to section 166.620. \Line